i would work with Solidworks personally. much more powerful than AutoCAD. also, you have access to COSMOS, which is a finite element analysis tool that can help you visualize weak spots. if you get your rough idea drawn out in Solidworks, then you can go to a wood mock up to check for clearances and accessories. but the part about making a mold is correct. for something like a cylinder block, getting the coolant passageways done for anything less than straight through is difficult with a CNC. lost wax casting or investment casting is the way these are done, i did research in my undergrad's experiment foundry for awhile, and i have a friend who works for Toyota's cylinder block and cylinder head foundry and i've taken a cool tour there. either way, if you make the motor simple enough with straight through water passageways, then you won't have to worry about foundry. and you can control the quality a lot more with CNC, because you'll start off with a block, and you won't have to worry about dialing in the different cooling expansions and overfills and runners associated with founding...
hope this helps!